MSE News: FSA to re-open 185,000 rejected debt insurance claims

ghawn

We will get back onto the FO after next week, as they said eight weeks ago, that it should take no longer than eight weeks. Has anyone else had problems with the MBNA, or are all the financial institutions about the same?
I will keep you informed!!!

marshallka wrote: »

:eek::eek::eek:So you won through FOS and they still after two years have not paid up. Have you been back to FOS with it? Have you been in touch with the FSA or let them know of your treatment? This is disgusting.

di3004

marshallka wrote: »

Di waiiiiitttttt, just looked again. Your settlement should have been without PPI according to rule 78 £21756.60 but you paid them 23646.04 with PPI so BECAUSE of PPI being added they charged you with interest that is £1889.44. This means their figures are out somewhere if they DID rebate you the shown figure. God this one does my head in... I wish tiggrae would do some calculations on it for you now she is back. We could see then for sure.

Now do just the PPI on rule 78 and it works that you should have paid back 2928.16 (that is with interest now) but they say they refunded you £1533.69 so they were "allowed to charge" 1394.47 but they actually charged you £1889.44. Were their any charges on this one for settling? A difference of near on £500

Or doing the two with rule of 78 it works out you should have settled 24684.76 but take off this rebate of £1533.69 and it works out £23151.07 which looks about right EXCEPT for this extra £500 again..... this £500 keeps cropping up.

Thanks Marshallka, I shall have a look at the details now and get back to you.;)

di3004

On the one piece of paperwork, it states this:

On the amount borrowed of £23,835.00, this relates to the total amount borrowed and not the cost of the loan.

Interest was not added as an upfront amount but was charged on a daily basis on the balance of the total loan amount and debited to the account monthly.

The total cost of the loan would be calculated by multiplying the monthly instalment by the term of the loan and deducting the original amount borrowed.
For example: £208.51 x 300 - £23,835.00 = £38,718.

...................................................................................
On the settlement figure information:

Balance of account outstanding as at 4th Oct 2005 £23561.73

Add interest to the date of settlement £374.71

Add Future charges £40514.39

Total amount payable before deducting rebate = £64450.83

Less amount of rebate (including insurance if applicable) £40924.79

Sub total prior to Legal Fees £23526.04

Add sealing Fee £120.00

Total amount payable for settlement £23 646 04.

I have nothing in calculations of where this rebate of £1,533.69 though, this is just what they had told me in a letter, but cannot see it on workings out.

marshallka

di3004 wrote: »

On the one piece of paperwork, it states this:

On the amount borrowed of £23,835.00, this relates to the total amount borrowed and not the cost of the loan.

Interest was not added as an upfront amount but was charged on a daily basis on the balance of the total loan amount and debited to the account monthly.

The total cost of the loan would be calculated by multiplying the monthly instalment by the term of the loan and deducting the original amount borrowed.
For example: £208.51 x 300 - £23,835.00 = £38,718.

...................................................................................
On the settlement figure information:

Balance of account outstanding as at 4th Oct 2005 £23561.73

Add interest to the date of settlement £374.71

Add Future charges £40514.39

Total amount payable before deducting rebate = £64450.83

Less amount of rebate (including insurance if applicable) £40924.79

Sub total prior to Legal Fees £23526.04

Add sealing Fee £120.00

Total amount payable for settlement £23 646 04.

I have nothing in calculations of where this rebate of £1,533.69 though, this is just what they had told me in a letter, but cannot see it on workings out.

You did have the rebate though as my post above but they DID charge you another £375 more than they should have done. I did not know about the sealing fee though so take that off and they are out. They did not unfair rebate you though and were allowed to use rule 78 in loans (of which you PPI became) but they rebated you on this by allowing for the at least 78% pro rata or near enough bar the £200 on page before. I am just glad you can now go for the misselling like I say. Your settlement would have been 24684.76 + the sealing fee of 120 which totalled £24804.76 but they gave you a rebate of the insurance (this is just the premium that they rebate on and not the interest on the premium which is unfair but apparently allowed) which they say was £1533.69 so settlement should have been £23271.07 but you paid a £375 more.

di3004

marshallka wrote: »

You did have the rebate though as my post above but they DID charge you another £375 more than they should have done. I did not know about the sealing fee though so take that off and they are out. They did not unfair rebate you though and were allowed to use rule 78 in loans (of which you PPI became) but they rebated you on this by allowing for the at least 78% pro rata or near enough bar the £200 on page before. I am just glad you can now go for the misselling like I say. Your settlement would have been 24684.76 + the sealing fee of 120 which totalled £24804.76 but they gave you a rebate of the insurance (this is just the premium that they rebate on and not the interest on the premium which is unfair but apparently allowed) which they say was £1533.69 so settlement should have been £23271.07 but you paid a £375 more.

Thanks for working this one out Marshallka :T:T.
I even had a go with that calculator you posted the other day and still could not get it right lol :D..

So I take it as it states in their policy then about receiving about a quarter of the premiums back for example if you settle earlier such as half way through the term of your policy.
And they also pay a part refund of the premium to the lender, does that seem to be the answer maybe on that extra amount?

marshallka

If you are going for misselling you would be put back into position as if you never had the PPI so you would get back the 14 payments of £24.28 being £339.92 and then the difference in settlement with and without the PPI being £21756.60 for the loan without PPI then add the sealing fee of £120 (21876.60) and then take off what you paid being £23646.04 so due back is £1769.44 so owing to is just over £2K. phew... got there.

Loan settlement with PPI (what you actually settled) 23526.04
Loan without PPI and only paying 184.23 in repayments being 21756.60
difference between them is 1769.44
Repayments against PPI totalling 14 x 24.28 = £339.92

di3004

marshallka wrote: »

If you are going for misselling you would be put back into position as if you never had the PPI so you would get back the 14 payments of £24.28 being £339.92 and then the difference in settlement with and without the PPI being £21756.60 for the loan without PPI and then add the sealing fee of £120 and then take off what you paid being £23526.04 so due back is £1649.80 so owing to you is near on £2K. phew... got there.

Wow that was very quick Marshallka, thank you.:T:T:j

marshallka

di3004 wrote: »

Wow that was very quick Marshallka, thank you.:T:T:j

I have amended as got my figures crossed and this was using the rule of 78 calculator too but it does work. Just have to wait and see when you win.


Its not just PPI that stings you, its rule 78 in settlements and the !!!!!!!s were allowed to use it... that really gets to me.

If you win misselling here and get back to where you should have been your total loan still cost you £24335.82 for borrowing £21K over 14 months. How can that be...??

di3004

marshallka wrote: »

I have amended as got my figures crossed and this was using the rule of 78 calculator too but it does work. Just have to wait and see when you win.

Thanks again Marshallka, all we want now is a WIN :T, gonna do my best and stick to it this time as much as I can, cheers again and here's to yours as well.:beer:

di3004

On the another piece of info from them, there is a part of what have actually been in to the loan it states:
Total payments received £26565.18.
Does that make any sense to you, think I did do some figures the other day on this will have to find them and see if it makes any sense.